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The investment will establish a new hub overseeing contract manufacturing across India and expand Lilly’s global supply of medicines for Alzheimer’s, diabetes, obesity, and cancer, amid shifting US trade and tariff policies.
Over the next few years, Eli Lilly will be financially committing over $1 billion toward bolstering its manufacturing and supply in India.1,2 The pharma powerhouse has been looking to expand its production efforts on a global scale via contract manufacturing, and the new hub does exactly that—creating a way to manage the company’s network throughout India while offering expanded technical capabilities.
The Big Pharma company will also be building a technical and quality center in Hyderabad.
Eli Lilly’s investment intends to boost the availability of some of its main drugs, such as those that tackle Alzheimer's, cancer, diabetes, obesity, and autoimmune conditions. The company unveiled Mounjaro to the Indian market earlier this year, but does not run its own manufacturing plant in the area. India has been known to house various drug developers and manufacturers that create injectables and vials among other equipment.
"We are making significant investments to increase manufacturing and medicine supply capacity around the world," noted Patrik Jonsson, president of Eli Lilly International. "This investment reaffirms our confidence in India as a hub for capability building within our global network."
Lilly’s move comes during a time in which a 100% tariff on branded and patented drugs was expected to take effect Oct. 1, unless pharma companies build domestic production facilities.3 Along that front, company previously announced that it would be constructing a new $6.5 billion manufacturing facility at Generation Park in Houston, TX. This represents the second of four sites in the United States that Lilly plans to reveal this year, with the first being a $5 billion production plant in Goochland County, VA that will be considered the company's first fully integrated facility dedicated to APIs pharmaceutical ingredient and drug product.3
In a recent Truth Social post, President Trump announced the following directive: “Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.. ‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction.’ There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!”
However, there have also been reports saying the US president may not enact the triple-digit pharma tariffs after all.4 Rather the tariffs could potentially use as negotiating tactic with pharma companies while they work out deals with the government to lower drug costs.
For one, Pfizer partnered with the White House to announce an agreement with the federal government aimed at lowering drug prices in accordance with Trump’s MFN (most-favored nation) executive order.4 As part of the announcement, it was also disclosed that Pfizer’s products will be exempt from tariffs for the next three years, contingent upon the company’s continued compliance with the agreement’s terms.
The industry might recall that this past August, Trump issued letters to 17 of the largest pharmaceutical companies—including Eli Lilly, Pfrizer, Genentech and GSK—expressing urgency for making changes along the drug pricing front.
References
1. Sadam R. Eli Lilly to Invest Over $1 Billion in India to Expand Manufacturing Capacity. Reuters. October 6, 2025. Accessed October 7, 2025. https://www.reuters.com/business/healthcare-pharmaceuticals/eli-lilly-invest-over-1-billion-india-expand-manufacturing-capacity-2025-10-06/
2. Bratulic A. Amid US Reshoring Wave, Lilly commits $1B to India Manufacturing. FirstWord Pharma. October 6, 2025 Accessed October 7, 2025. https://firstwordpharma.com/story/6314353
3. Saraceno N. Trump Announces 100% Tariff on Branded Drugs Unless Pharma Builds US Plants. Pharmaceutical Commerce. September 26, 2025. Accessed October 7, 2025. https://www.pharmaceuticalcommerce.com/view/trump-100-percent-tariff-branded-drugs
4. Hollan M. Trump Pauses Plans to Impose 100% Tariffs on Pharma: Report. Pharmaceutical Executive. October 2, 2025. Accessed October 7, 2025. https://www.pharmaceuticalcommerce.com/view/trump-100-percent-tariff-branded-drugs
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